The PS3 is the new star of my home theatre!
Games in HD like Gran turismo HD (free download) & Formula 1 Championship edition are just great, very immersive on a 70"XBR2!

I would have sat out the Blu-ray vs HD-DVD war if not for the PS3, it was hundreds of $$$ cheaper than the standalone first gen players & I was going to get it for the games anyway.
A good Blu-Ray movie really shows you what HD is all about!
I've quit buying DVD's & will only buy Blu-Rays from now on, the picture quality is awsome!

I also use the memory card slots, I watch videos & pictures I've shot on my big screen, it's much better than looking at them on a 3x5 piece of paper!

And with the continuing upgrades the PS3 just keeps getting better.
With the latest v1.8 it now upconverts DVD's to 1080p as well as PS1 & PS2 games & streams pictures & videos wirelessly from my computer.

I can only see the PS3 getting better down the road, once the developers learn to use the full power of the cell processors the graphics wil go from great to truly amazing!

I can hardly wait for Gran Turismo 5 to be released!

Also with the lawsuit setteled between Sony & Imersion rumble is back!

$599 was expensive for a game console, but when you consider it is also a first rate Blu-Ray player & streams pics & vids from my computer & no telling what the updates will unleash in the future, this may be the biggest bargain in my home theatre!

P.S.
I just recieved an invitation to the Playstation Home Beta, I'm looking forward to exploring that enviroment to see if it'll be the killer app everyone thinks it will be.

Moose, Here is my thing. I agree, that since the PS3 is a Blu - Ray player, as well as a game console, it makes good sense.
But, i`m now where you are. I`m not into the HD - DVD vs. Blu - Ray war either. That is why I firmly believe that a good universal player that will also play your SACD`s and DVD - A`s, is an excellent choice. Superior audio and video, most will upconvert DVD TO 1080P, will play just about any disc that spins, and the pricing keeps dropping with trickle down technology coming from the top models.
And of course, no worry about changing my video library again. Beta vs. Vhs, 8mm vs. vhs type c any one?

I own the PS3 and LOVE it. I use it exclusively as my Blu-ray movie player... I have no games at the moment. I have installed the latest firmware update and the DVD upscaling is fantastic. The 720p output for 720p displays is also much improved over having the display down-convert from 1080i as I had to do before the new update.

I've never actually played a standard DVD in my PS3.
I have a good upconverting DVD player (Sony DVP-NS3100ES) that I play my DVD's on so I could only compair between the 2 players & not on before & after the 1.8 update.